The CMBS delinquency rate for U.S. commercial real estate loans in CMBS declined a significant 0.17% from April to 5.40% in May, according to Trepp. In the last 25 months, the delinquency rate has fallen 22 times and is now 87 basis points (bp) lower than the year-ago level. The May decrease is the biggest drop since November 2014, when the Trepp CMBS delinquency rate fell 34 bp.
In May, $1.2 billion in loans became newly delinquent, which put 23 bp of upward pressure on the delinquency rate. Almost $700 million in loans were cured in May, which helped push delinquencies 13 bp lower. CMBS loans that were previously delinquent but paid off either at par or with a loss totaled over $1.2 billion in May. Removing these previously distressed assets from the numerator of the delinquency calculation helped move the rate down 24 bp.
Percentage of 30-plus Days Delinquent
|3 Months Ago||5.58%|
|6 Months Ago||5.80%|
|12 Months Ago||6.27%|
Here are the numbers by property type:
- The industrial delinquency rate dropped 33 bp to 7.50%.
- The lodging delinquency rate broke the 4% barrier, falling 38 bp to 3.80%. Lodging remains the best performing major property type.
- The multifamily delinquency rate dropped 30 bp to 8.62%. Apartment loans remain the worst performer among the major property types.
- The office delinquency rate shed 18 bp to 5.93%.
- The delinquency rate for retail loans inched lower 2 bp to 5.43%.